In 20X1, Alpha Ltd reported the following results:

Sales (10,000 units @ $200) $2,000,000

Fixed costs $ 540,000

Variable costs 1,400,000 1,940,000

Net profit $ 60,000

Required:

1. Calculate the break-even point for the company in terms of units and sales dollars.
2. What is the sales volume and sales dollars required to generate a net profit of $96,000?
3. What is the new break-even point in units if management plans to launch an advertising program that cost $18,000 per year?